Wise Stock Falls as Take-Rate Concerns Overshadow Strong Q1 Results

Shares of Wise Plc (LSE:WISEa) fell on Wednesday after the cross-border payments company's guidance for declining fees overshadowed a strong first-quarter earnings report. The stock slipped 2.2% to trade at 924.8 pence as investors engaged in profit-taking amid concerns about the company's future revenue growth trajectory.

Strong Start to Fiscal Year

Wise reported first-quarter results for fiscal year 2027 that beat analyst forecasts across key metrics. The performance highlighted continued momentum in its core business.

• Net Revenue: Rose 25% year-over-year to $714 million.
• Total Revenue: Reached $929.51 million, exceeding consensus estimates by over 11%.
• Earnings Per Share (EPS): Came in at $0.2203, beating the consensus forecast of $0.1971 by nearly 12%.

Guidance Sparks Investor Concern

Despite the strong quarterly performance, the market's attention centered on the company's guidance for its cross-border take rate—the percentage fee it earns on transactions. This key metric declined by 2 basis points year-over-year to 50 basis points in the first quarter.

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Management expects this compression to continue, forecasting a further decline of 1 to 2 basis points per quarter through the fiscal year. According to CFO Emmanuel Thomassin, this trend is expected to slow revenue growth in the second half of the year. While Wise reiterated its full-year guidance for net revenue growth of 15–20%, the outlook for margins prompted a cautious investor reaction.

Market Context and Analyst Views

The share price decline reflects a classic "sell the news" dynamic, where a positive earnings report was already priced in following a recent rally. The new guidance on fee compression introduced enough uncertainty to trigger profit-taking, according to Investing.com.

Analyst sentiment was divided following the report, with JPMorgan raising its price target while UBS lowered its own, citing adjustments to its growth and margin assumptions. The move also occurred against a wider risk-off backdrop in European markets, which added pressure to high-growth technology stocks like Wise.